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Devra Gartenstein, a restaurant owner, made the following observation about preparing food: Cooks become increasingly less productive as a kitchen becomes increasingly crowded. Source: Devra
Devra Gartenstein, a restaurant owner, made the following observation about preparing food: "Cooks become increasingly less productive as a kitchen becomes increasingly crowded." Source: Devra Gartenstein, "Law of Diminishing Marginal Returns in Restaurant Operations," smallbusiness.chron.com. What do economists call the problem she is describing? What are its implications for the marginal product of labor for cooks? A. Diminishing marginal returns, where additional cooks produce less additional output. B. Negative marginal returns, where additional cooks reduce the output produced. C. Increasing marginal returns, where additional cooks produce additional output. D. Fixed inputs, where additional cooks do not produce additional output. Part 2 Do restaurant owners have a solution to this problem in the long run? Briefly explain. A. Yes, restaurant owners can vary the size, or number, of kitchens. B. No, restaurant owners cannot solve this problem. C. Yes, restaurant owners can solve this problem by adding more cooks. D. Yes, it is possible to solve this problem with economies of scale
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